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CHIP TECHNOLOGY Q&A
WHAT IS CHIP TECHNOLOGY?
Chip technology is an evolution in our payment system that will help
increase security, reduce fraud and enable the use of future value-
added applications. Chip cards are embedded with a micro computer
chip. Some may require a PIN instead of a signature to complete the
transaction process.
WHAT ABOUT MAGNETIC STRIPE CARDS?
Your terminal will still have the capability to process magnetic stripe
cards. Chip cards will still have a magnetic stripe in order to be
compatible with other international and regional standards so that
customers will be able to use their cards on your terminal.
WHAT ARE THE TRANSACTION PROCESS AND NEW PROMPTS?
Your terminal can process EMV transactions for chip cards that have
been issued in the U.S. or from other countries. In addition, your
terminal will continue accepting all non-chip payment cards. Simply
use the magnetic stripe for those transactions.
To process a chip card transaction, follow these five steps:
1. Initiate the transaction on your terminal by pressing [0] or [Enter],
and following any additional prompts.
2. Ensure the customer has access to the payment device by passing it
to them if necessary.
3. The customer inserts the chip card into the chip card reader (slot
on the bottom-front of the terminal) and leaves it there until the
transaction completes.
4. Follow the prompts displayed on the terminal.
5. Let the customer complete the transaction by keying in a PIN or
signing the receipt.
WHAT ARE THE BENEFITS FOR MY BUSINESS?
Fraud Protection — Chip technology is virtually impossible to copy,
and combining its use with a PIN helps reduce fraud due to lost, stolen
or counterfeit cards.
Reduced Chargeback Risks — As fraud decreases, so will the amount
of customers who dispute transactions.
Peace of Mind — The acceptance of chip cards will become a payment
brand and PCI compliance mandate, and the adoption of the EMV
process means the card never has to leave the customer’s hand.
EMV chip technology is
the global standard for
credit and debit card
payments. Named after
its original developers
(Europay, MasterCard
and Visa), this smart
chip technology features
payment form factors
(cards, mobile phones,
etc.) with embedded
microprocessor chips
that store and protect
encrypted account user
data.
This enhances the
authentication of both
the card and cardholder,
eectively reducing
fraudulent activity in
the regions that have
adopted this technology.
Chase has been
supporting chip
technology in Canada
for several years and
is playing an active
role in ensuring our
merch ants are ready
when the U.S. payments
industry mandates it.